Dan Walker Gets Out Of Prison

Former Governor Served 17 1/2 Months Of A 7-year Term

June 23, 1989

Former Gov. Dan Walker was released from federal prison in Minnesota after a federal judge reduced his 7-year sentence to time served on his conviction for fraudulently obtaining $1.4 million in bank loans.

U.S. District Court Judge Ann Williams had sentenced Walker to 7 years in prison in 1987. She reduced that Wednesday to the 17 1/2 months Walker had already served after hearing his lawyer, Thomas Foran, describe Walker`s fragile health and model behavior in prison.

Foran said that Walker, 66, suffered from high blood pressure and emphysema, which are both ``deteriorating kinds of diseases.``

``He had eaten a lot of crow and worked in prison doing counseling work and teaching. He also worked in the metal workers unit and qualified as a welder,`` said Foran, who added that he did not know where Walker went following his Wednesday afternoon release. Foran said when he phoned Walker to tell him of his release, Walker was ``all shook up.``

Walker was being accompanied by his son, Dan Jr., according to his son`s wife, who said they weren`t expected to return to the son`s Naperville home.

The maverick corporation lawyer, who walked the length of the state in 1972 in his campaign to become governor of Illinois, has made restitution of all but $98,000 of the $1.4 million and ``pauperized himself`` in the process, Foran said.

Walker was the second former Illinois governor to be convicted on federal charges. Otto Kerner was sentenced to three years in prison after his conviction in 1973 on charges of bribery, conspiracy, mail fraud, tax evasion and perjury. He was paroled after serving a year.

In sentencing Walker in November, 1987, Williams accused him of using First American, the Oak Brook-based thrift of which he was chairman of the board and chief executive officer, as ``a personal piggy bank, a personal kitty`` to keep his businesses afloat and his lifestyle intact.

Walker pleaded guilty to charges that he improperly received the $1.4 million through myriad bank transactions, many from First American, and by inflating his assets and his salary and by understating his liabilities. The money was used to help finance a chain of quick oil-change franchises and for personal expenses, including operation of an 80-foot luxury yacht, the Governor`s Lady.

He had pleaded guilty to one count each of bank fraud, misapplication of bank funds and perjury.

Walker`s troubles began after his defeat by Secretary of State Michael Howlett in the 1976 Democratic gubernatorial primary.

He started a statewide chain of law offices, which did not succeed, and a hunting and fishing club, which also failed. He considered, but decided against, another run for governor in 1982 after it was clear that former U.S. Sen. Adlai Stevenson had the party`s support.

In 1981, he and his wife and millionaire Frank Butler started Butler-Walker Inc. to operate quick oil-change garages in the Chicago market. The chain grew to 35 centers. Jiffy Lube International Inc. bought the chain in 1985 for $1.3 million.